Israeli Cannabis Co. Reports Solid Q2 Performance, Nearing Growth Targets

Cannabis company Evogene Ltd. EVGN EVGN announced its second quarter financial results on Thursday for the period ended June 30, 2023, revealing a significant year-over-year uptick in revenue to roughly $654 000 compared to approximately $312 000 in the same period the previous year. During the previous quarter, the Israeli company generated $641,000 in revenue.

Q2 2023 Financial And Operational Highlights

• Gross profit totaled $193 000 compared to $50 000 in the prior year's period.
• Operating loss decreased to $7.9 million from $8 million in the same quarter of 2022.
• Net loss was approximately $7.8 million, compared to a net loss of roughly $9.8 million in the same period in the previous year.
• R&D expenses which are reported net of non-refundable grants received, were roughly $5.4 million and remained stable as compared to approximately $5.4 million in the same period in the previous year.
• Sales and marketing expenses were approximately $928 000 for the second quarter of 2023 and slightly decreased as compared to roughly $962 000 in the same period in the previous year.
• General and administrative expenses were approximately $1.8 million in the second quarter of 2023, compared to approximately $1.7 million in the same period in the previous year.
• Financing income, net of financing expenses, for the second quarter of 2023 was $100 000 compared to financing expenses, net of financing income, of $1.7 million in the same period in the previous year.

"The second quarter of 2023 marked a period of remarkable achievements for the Evogene group," Ofer Haviv, the company's president and CEO, said.

He also listed some of the milestones the company achieved during the quarter, including:

• Receipt purchase orders in the aggregate amount of $11.3 million for Casterra's elite castor seeds;
• Execution of a licensing agreement between Lavie Bio and Corteva;
• Closing of a financial round for Biomica of $20 million;
• Infrastructure and computational architecture improvements, including new applications, in our tech engines, resulting in new capabilities and better automation, scalability, and speed; and
• Investors supported Evogene's equity with a gross amount of $8.5 million in the company's recent financing round.

Cannabis Regulations Evolve Worldwide

Meanwhile, cannabis companies in the U.S. and Canada are capitalizing on the expanding European market as attitudes toward cannabis products continue to evolve and regulatory frameworks become more favorable.

As such, IM Cannabis Corp., another company with operations in Israel, expects to benefit from the recently announced anticipated reform of medical cannabis regulations in the country. As per Israel's Ministry of Health, the new rules are expected to significantly reduce the restrictions imposed on the industry, allowing patients easier access to medical cannabis for their treatment in this Middle Eastern country.

Evolving cannabis regulations on a global level is just one of many topics that will be discussed by top CEOs, investors and leaders in the cannabis industry at the upcoming Benzinga Cannabis Capital Conference in Chicago.

EVGN Price Action

Evogene's shares traded 1.72% higher at $0.7947 per share during the pre-market session on Thursday morning.

Related News

• Evogene 2022 Revenue Grows 80% To 1.7M
• Canonic Launches Six Second-Generation Cannabis Products With Higher THC And Rich Terpene Profiles

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay